Seminar on Organisation-Its Concepts

and Principles.

ByMs. Muhsinath.A. R

2ND Year Msc (N)

INTRODUCTION:• Organization is the formal structure of

authority calculated to define, distribute and provide for the coordination of the tasks as contribution to the whole.

• It consists of the relationship of individuals to individuals and groups to groups which are related as to bring about an orderly division of labour.

terminologies

Organization: arrangement of personnel for facilitating the accomplishment of some agreed purpose through allocations of functions responsibilities.

Supervision: it is the process of overseeing the employees at work.

Bureaucracy: it refers to the tasks and procedures of administration

Integration: it means unification in administrative languages or connecting one or more independent organization with the rest.

Disintegration: it means lack of unity.

Terminologies contd…

Centralization: it means concentration at or near the top.

Decentralization: it means that the central authority gives certain power to the local authorities.

Delegation: it means conferring of specified authority by a higher authority.

Organizational chart: it is the diagrammatic representation of the different positions in the hierarchy of an institution.

DEFINITIONOrganization is the process of combination

of work in which individuals and groups have to perform with the faculties necessary for its execution.

____________Olive Sheldon

Organization is the arrangement of personnel for facilitating the accomplishment of some agreed purpose through allocations of functions and responsibilities.

______________L. White

DEFINITION contd…

Organization can be defined as a process of identifying and grouping the work to be performed, defining and delegating the responsibility and authority and establishing relationships for the purpose of enabling people to work together more effectively in accomplishing the objectives.

Concepts of organization

CONCEPTS OF ORGANISATION

NATURE OF ORGANIZATION IMPORTANCE OF ORGANIZATION

UNITS OF ORGANIZATION

Nature of organization

Organization is the process of dividing and combining the activities.

Organization makes careful determination of what jobs are to be

done and what workers are required to do them. Assess the amount of materials, tools and equipments

needed for the accomplishment of the work.

The purpose of organization is to unify the human effort and a clear understanding of human relationships which is necessary for the desired outcome.

To achieve this the organization should have four “P”s.

Nature of organization contd…

P- Purposes; e.g.: health and family planning, post and telegraph, education, defense etc.

P- Process: e.g.: law, personnel P- Person target group; e.g.: eligible

couples P- Place setting; e.g.: primary health

centers, hospitals

Importance of organization

Organization facilitates management activities.Ensures specialization.Encourages efficiency and effectiveness of the organization.Organization facilitates coordination in the enterprises.Facilitates optimum use of the human resources.Stimulates creativity of the members/ workers.Facilitates the growth.Helps to determine the responsibility and authority.

Importance of organization contd…

Helps in the personal identity.Facilitates supervision.Determines the levels at which various types of decisions are to be made.Organization prevents the growth of laggards, wire pullers, intriguers, or other forms of corrupters.Unsound organization becomes the breeding ground of corruption, dishonesty and such odd things.

Units of organization

Unit is the lowest or smallest post or subdivision of a whole. The primary unit of the organization would be post or position.In administrative terms unit indicates the higher and the larger formulation such as the section, the division, the branch, the bureau and even the departments.There are mainly two units of organization. i.e. line unit and staff unit.

Units of organization contd…

The difference between the line and the staff units is a qualitative or functional one, namely the difference between the executive and the advisory functions.The line units are executives i.e. concerned with the operating or producing of the various service which the administration has to provide for the people .The staff units are those that advice or assist the line units in their performance of their work. Line units command, staff units only advise and help through planning research coordination, supervision etc.

Units of organization contd…

For e.g. Ministries of different levels are line units and their secretaries are staff units in India. Line units may be departments or independent regulatory commissions or government operations.Staff units may be general staff, technical staff, and auxillary staff.

Theories of organization

Scientific management or physiological organization theoryBureaucratic theory of organizationClassical theory of organizationHuman relations theory of organization

Scientific management or physiological organization theory

This is the first coherent theory of organization.This concept was first used by Louis Brandis.The assumptions based on this theory include: The application of methods of science to

organization’s problems leads to higher industrial efficiency. [observation, measurement and experimental comparison are these methods]

The incentive of high waves will promote the mutuality of interest between workers and managers which in its turn will lead to high productivity.

Bureaucratic theory of organization

The term bureaucracy was first coined by Vincent de Gournay

It refers to the talks and procedures of administration as well as a collective word for a body of administrative officials.

The characteristics of bureaucracy such as precision, continuity, discipline, strictness, reliability are technically most satisfactory form of organization.

The other features of bureaucracy as enumerated by Max Weber are:

The staff members are personally free, observing only the impersonal duties of their officers.

There is a clear hierarchy of officers.

Bureaucratic theory of organization

The functions of the officers are clearly specified. Officials are appointed on the basis of a contract. They are selected on basis of professional

qualifications. They have a money, salary and pension rights. The official’s post is his role or major occupation. There is career structure and promotion. The official may appropriate neither the post nor

the recourses which go with it. It is subjected to unified control and disciplinary

system.

Classical theory of organization

According to Henri Fayol administration comprises of five elements;

Forecasting Planning Organizing Commanding Coordinating Controlling

Accordingly he propounded 14 principles of administration.

Later Luther Willick summed up principles of administration in the word POSDCORB.

The classical theory of organization is made explicit in organization changes, rule books, manuals, rules of procedures etc.

It deals with what is called formed organization- an organization which is deliberately used, rationally designed to fulfill the objectives of the organization.

Classical theory of organization

Human relations theory of organization

Elton Mayo and his colleagues conducted after conducting some experiments in electrical company at Hawthorne proved that men are not inert or isolated responding.This theory focuses on the two aspects like:

The structural approach of the mechanistic approach emphasizes formal structure of an organization where relationships are established by statute or by top management. Under this approach an organization is seen as mechanic and considering the workers as more cogs.

The humanistic approach emphasizes the people in an organization, human motivations and informal group functioning rather than formal relationship determined through charts or diagrams.

GENERAL PRINCIPLES OF ORGANIZATION

The organization structure should be based on the objectives of the enterprises.

Effective organization must promote the specialization.

Span of control should be kept as minimum, as there is limit to the number of persons that can be supervised effectively by one manager.

The line of authority from the chief executive at the top to the front line workers at the bottom must be clearly defined.

Each subordinate should have only one superior. Each manager should have enough authority to

accomplish the task assigned to him.

GENERAL PRINCIPLES OF ORGANIZATION contd…

The superior should be held responsible for the acts of his subordinates.

The authority of each manager must be clearly defined.

The levels of management should be kept as far as possible to the maximum.

The organization structure should be flexible and permit expansion without disruption to the basic design.

There should be balance in the size of various departments, in the span of control, chain of command etc.

There should be unity of direction.

GENERAL PRINCIPLES OF ORGANIZATION contd…

Organizational structure must ensure optimum use of human resources and encourage development programs.

Organization may be departmentalized on the basis of functions, products, place or combination of the three.

Principles of organization

Principles of organization

Span of controlhierarchy

delegation

Integration vs disintegration

Centralization vsdecentralization

Unity of command

hierarchy

It means the rule or control of the higher to lower.

Any organization is like a pyramid, broadest at the base and tapering towards the top.

In any organization both vertical and horizontal growth will be there.

When additional levels are added in the organization it is called vertical growth.

When more functions and positions are added it is called horizontal growth.

Hierarchy contd…

• E.g.: Medical Superindent(1) Nursing Superindent(1) Deputy Superindent(3) Assistant Superindent(6) Staff nurses(30)

Advantages of scalar principles of hierarchy

It is an instrument of organizational integration and coherence.

The scalar chain serves as a channel of communication upwards and downwards.

The rule of through the proper channel created by the scalar principle ensures that there will be no short circuiting procedures or ignoring of the intermediate links.

It establishes below the top executive, a number of subordinate levels each of which is centre of decision for specified matters of a less important nature.

Advantages of scalar principles of hierarchy

It establishes below the top executives , a number of subordinate levels each of which is centre of decision for specified matters of a less important nature.

It helps to clarify and define the relative positions and responsibilities of each post in the organization.

The general functions of the hierarchical structure

Fixing the responsibility. Providing the leadership with areas of description at

successive levels. Providing means for exerting influence and exercising

fellowship. Making any particular organization and the general

government manageable. Making it acceptable. Determining the levels at which the decision of various

kinds may be made. Providing for ready movement of decision making from

one level to another under agitation. Bringing to bear relevant, competing and

complementary interests, functions and points.

II. SPAN OF CONTROL

☺Span of control means the number of subordinates an officer can effectively supervise.

☺The number of subordinates that a supervisor can personally direct or supervise is known as span of control.

☺The shorter the span of control the greater will be the control and efficiency of the work will be improved.

E.G FOR SPAN OF CONTROL

Chief nursing officer

Deputy nursing officer

Deputy nursing officer

Deputy nursing officer

3 ANO 3 ANO 3 ANO

10 SN 10 SN 10 SN

The span of control varies with four factors namely

function: type of work to be supervisedPersonality: competence of the supervisors

and the subordinates concerned Space: place where the work to be

supervised Time: age of the organization concerned.

SPAN OF CONTROL

III. Integration vs disintegration

Integration means the unification of the organization.

It means connecting one or more independent organization with the rest of the organizational structure of the country by placing them under the chief executive directly or through some department.

It involves the abolition of the independent status of the agencies.

The disintegrated administrative system will not be conferred by law or constitution and it will be dealt by many people and there will not be any single chief executive. In simpler terms lack of unity.

Integration vs. disintegration contd…

Integrated administration facilitates coordination and disintegrated administration creates anarchy (lawlessness) and conflicts.

IV. Centralization vs. decentralization

Centralization stands for concentration of authority at or near top.

The decision will be taken in the top level authority if the administration is centralized.

Decentralization means that the central authority gives certain power to the local authorities.

A decentralized organization is the one in which the lower levels are allowed to decide most of the matters which come up, reserving comparatively a few bigger and more important problems only for those in higher position.

V. Unity of command

Unity of command means that no individual employee should be subjected to the orders of more than one immediate superior.

The concept of unity of command requires that every member of an organization should report to one and only one leader.

It helps increasing the coordination in the organization.

VI. Delegation

Delegation means conferring of specified authority by a higher authority.

Delegation implies transfer of certain specified functions by the superior to the subordinates authority.

In other words delegation of responsibility always remains with the superior.

Essential aspects of delegation

Assignment of duties and tasks.Grant of authorityCreation of accountability

Principles of delegation

Delegation according to abilityAbsoluteness of responsibilityParity of authority and responsibilityDefinitions of results expectedUnity of commandAuthority of levels

Steps of organization

Determination and enumeration of objectives for each activity.

Grouping and assigning activities. Allocation of fixed duties to definite persons. Delegation of authority.

In a brief the important steps in organizing are: Determination of objectives of each activity. Deciding on the various types of activities to be

undertaken within the framework of the formulated plan to attain the goals of organization.

Grouping of activities according to their similarities, interrelationships, competencies and capacities required in performance of these activities, its importance in relation to attainment of goals.

Steps of organization

Deciding different group of activities according to the number of staff, the eligibility requirement of staff, seating arrangement, the materials and supplies, machines and equipments, funds and methods for maintaining the moral of employees.

Determining the authority, responsibility and accountability of different members of staff, which includes

Determining the lines to authority with the channels of communication.

The relationship between members, departments, supervisors, peers, and subordinates

Developing an organizational chart based on above. Allotment of duties to individuals. Integration between the identified group of activities

through relationship and organized communication system.

Organizational structure

Each organization has a formal and an informal structure and that governs work flow and interpersonal relationship.

The formal structure is planned and published whereas the informal structure is unplanned and covert.

An organization’s formal structure is the official management of positions into patterns of working relationship that coordinate the efforts of workers with diverse tasks and abilities.

The informal organization structure consists of unofficial relationships among workers that influence work effectiveness.

The organizational charts

The organizational structure is generally depicted in a diagrammatic form.

The conventional organization chart is a line or scalar chart, showing each layer of the organization in sequence.

Organization chart is the diagrammatic representation of the different positions in the hierarchy of an institution showing the channels of communication and the formal line of authority among these positions.

It also provides opportunity to all from the top level administrators to the work force, to understand their positions, roles and to whom they are accountable and/or answerable.

Organization charts helps in many ways in an organization

It serves as a tool for the management and enables each employee for his/her placement and relationships in the organization.

It serves as an employees, to whom they are accountable and answerable.

It provides basis for classification of personnel and evaluation system, where it plays role of detecting deficiencies and inconsistencies.

The organizational charts contd…

The organizational charts contd…

There are two types of organizational charts

The master chart.The supplementary chart.

The organizational charts contd…

The master chart depicts the entire organization, showing all departments and major positions of authority.

The supplementary chart for a department gives specific details for the organizational pattern of that unit, and the linkage of authority in the direct chain of command from highest authority to that derived by the department chief

Advantages of the organizational charts

Maps lines of decision making authority.Helps people to understand their

assignments and those of their co-workers.Reveals to managers and new personnel

how they fit into the organization.Contributes to sound organizational

structure.Shows formal lines of communication.

Disadvantages of organizational chart

Shows only formal relationship.Doesn't indicate degree of authority.May show things as they are supposed to

be or used to be rather than as they are.Possibility exists of confusion.

Role and function of administrator/manager in organizational structure

Evaluates the organizational structure frequently to determine if management positions can be eliminated to reduce the chain of command.Encourage employees to follow the chain of command and gives counseling and guidance to enable them to do so.Supports personnel in advisory staff positions.Models responsibility and accountability for subordinates.Assists nursing staff to see how their roles are congruent with and complement the common organizational tasks.Facilitates informal group structure.Encourages upward communication.Explains organizational culture to subordinates.Counsel employees who do not follow chain of command.